“Either you’re here or you’re not.” That was what Joe Hockey, Australia’s Treasurer, told General Motors’ Australian arm Holden only yesterday, after the company said it still wasn’t sure whether it was committed to manufacturing in Australia.

Holden has absorbed $A1.8bn in government subsidies during the past decade and had sought more funding to secure the development of its next generation of cars. The Australian opposition suggested Hockey’s reaction had “dared Holden to leave”. Today Holden left.

Holden will stop building cars in Australia in 2017, meaning the company will join Ford and Mitsubishi in pulling out of manufacturing in a country that has the combined difficulties of a strong currency and a small local market. Only Toyota is left committed to manufacturing in Australia. For now.

Holden’s failure to sell enough cars in its home market is its ultimate downfall. In 2002, Holden sold 80,000 Commodores (its staple large saloon, built locally). Last year it sold just 30,000. With a break-even figure of 40,000, this has been a long time coming.

When Autocar visited Holden and Holden Special Vehicles (which we’ll come to in a moment) in July, the stock answer to questions about its future was an honest “we don’t know”. Today we do, and the announcement, though a shock and disappointment to many, will be a surprise to no-one.

That Holden has carried on for this long is because it has much else to offer: not least the fact that it employs 3500 people at its plants in Victoria and Adelaide. It also has a fine test track at Lang Lang, near Melbourne, and some very talented engineers whose abilities, it was hoped, GM could put to better use in developing overseas models. Instead, these engineers and the test track will go, as will Holden’s status as GM’s global rear-drive specialists. Holden developed the Chevrolet Camaro.

What will stay is the Holden design studio – one of only two in the global GM stable with the ability to design and make a concept car from start to finish.

Spare a thought, too, for Holden Special Vehicles, the company which Tom Walkinshaw founded and is still owned by his family. It makes even hotter versions of the Commodore and its derivatives, with heady engines and honed dynamics. HSV’s latest “Gen-F” is a belter. You’ll best know it here as the Vauxhall VXR8.

HSV is financially independent of Holden but was given access to Holden development cars five years ahead of launch, and developed its products alongside Holden’s: so when there was a new Commodore, so too was there a new HSV.

HSV has other strings to its bow: it owns a V8 Supercar race team, could realistically tune future Holden-badged cars even if they’re not developed in Australia, and has other interests; it even imports sporting goods. HSV is versatile and has a future. Holden manufacturing is not so fortunate.

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As someone who drives a Vauxhall badged Holden, i think this is very sad news. My hope would be that GM build RWD cars for the US and Australian market somewhere outside Australia where its cheaper, and so still build them in RHD.
The movement in the Australian dollar in recent years has made their cars (and any export) look very expensive compared to a few years ago. Probably worse still for Holden is it makes imported cars look much cheaper too.
If developed properly GM could have sold Commodores in Europe if they offered a powertrain the masses wanted. Limiting it initially to just V8s, and then to just HSV V8s ensures a minimal market, even if the cars they have brought over here are wonderful.
So i hope we will read that the next commodore will still be RWD, and have the option of a V8, just be made somewhere cheaper

@artill
Agree totally.
With the passing of the Omega, I'd held out hope that the Commodore would be made available with a range of UK-friendly engines such as diesels, 4 cylinder petrols, V6s etc.
GM seem to have a reverse midas touch. They had to shutter Pontiac, Saturn and Oldsmobile in the US, ruined Saab in Europe, when other manufacturers are looking to bring budget brands into Europe they pulled out Chevrolet because of the mess they made setting it up

I'm amazed GM kept Holden going as long as they did. The maths are simple: A$1.8bn of Government money for 3500 jobs is over half a million dollars per job. There's no way any Government could carry on that level of subsidy, irrespective of the damage to the Aussie national pride and psyche from the demise of their only native car brand.

Hopefully, based on the previous remarks, GM will get its act together and begin to provide decent vehicles for the masses in Europe and the UK - powertrains more to your needs, right-hand drive, at the right price (to actually sell), etc. However, I, for one, not holding my breath.

Being in the US, not especially keen on our manufacturer's products, though there have been improvements - great Cadillac chassis, for instance, in the latest CTS.

Unfortunately, seems to be more the exception than the rule. Foreign manufacuturers appear to care more about repeat customers & loyalty.